Felling lightheaded by the recent Real Estate Market Gyrations. Know that you are not alone!
Pointedly until interest rates stop rising and begin to level off. G.T.A Home prices will probably continue their negative trajectory.
How steep and long will the trajectory become is a multi-billion dollar question.
Certain financial triggers can be found in such things as how the 21% of homeowners who own multiple residential property owners(>5).
React en-masse to rising interest rates. As an example, the speed and depth of any future decline will be determined by how long and deeply this particular group of proprietors can hold onto these investment properties.
Fortunately for these aforementioned group of property owners. Rental vacancy rates are effectively hovering below 1%. Resulting in vigorous rental rates.
Presently many of these would be developers, that have lived have lived on the financial edge by robustly advocating the concept of “Buy, Renovate, Rent and Refinance”. “Then Rinse and Repeat”. Have quickly discovered that things are not that simple or transparent at this date in time. Especially as their go-to lenders tighten their requirements.
Additionally, as many of the building projects advance closer to their completion. Many thousands of G.T.A millennial`s believed real estate was sacrosanct in Value. Now face the prospect of financing two homes.
Despite the pending problems, there is still value to be found in this particular market.
In addition, within five years, over 2 million more immigrants will arrive in Canada. As interest rates rise, people will gradually adjust. Real Estate remains Canada`s # 1 Asset class. Canada has one of the highest percentages of home ownership of the G 20 nations.
Questions?
Call or email any one of our offices if you would like more information on how to best work through this type of Real Estate market.